Home as a place of business during COVID: CGT implications

The COVID-19 pandemic has resulted in more employees working from home than ever before. This, in turn, has resulted in such people being able to claim a range of deductions for various “running expenses” associated with working from home. These expenses include...

Christmas and the Taxman

When do employee gifts and celebrations attract fringe benefits tax (FBT)? And when are they exempt? Christmas is traditionally a time of giving – including employers showing gratitude towards staff for a job well done. However, Christmas parties and gifts can attract...

Beware of disguising undeclared foreign income as gifts or loans

Many people living in Australia often have money remitted to them from overseas. Often this money is from relatives, friends or an “entity” to which they have a connection. However, even if such funds are merely loans or gifts, it’s time to be vigilant and to keep...

Undisclosed income risks hefty asset betterment statements

A recent Federal Court decision has put the spotlight on asset betterment – the controversial approach the ATO takes to determine undisclosed income. In the case of Le v Commissioner of Taxation [2021] FCA 303, the ATO used an asset betterment calculation to justify...

New guidance on “personal services income” rules

The ATO has recently updated its guidance material on the operation of the personal services income (PSI) and personal service business (PSB) rules. These highly prescriptive rules took effect from the 2000-01 income year, after the government became concerned that...

SMSF regulations to allow six members under new legislation

A bill has been introduced into Parliament that partially implements a measure to allow an increase in the maximum number of allowable members in self-managed superannuation funds and small APRA funds from four to six. First floated in the 2018-19 Federal Budget, the...